Highlights from the 2016 Autumn Statement. From 2017 there will be a budget update in April with a full budget statement in the Autumn.
- National living wage will rise from £7.20 up to £7.50 next April
- They are introducing a new flat-rate VAT scheme rate of 16.5% for businesses with limited costs which is intended to reduce any tax advantage and potential abuse of the flat-rate scheme
- Fuel duty rise has been cancelled again for the 7th year in a row
- VAT on insurance will rise from 10% to 12% in June 2017
- The income tax threshold will go up from £11,000 to £11,500 in April
- The Higher rate tax threshold will increase to £45,000 and upto £50,000 by the end of the parliament
- Employee and employer national insurance thresholds will be equalised at £157 per week
- They are going to introduce a ban on up-front letting feeds in England
- Change in the universal credit taper rate bringing it down from 65% to 63%
- A new 3 year bond will be offered to savers next spring with an interest rate of 2.2%, but only for £3,000